![]() When investing in stocks, your returns come from capital gains, price appreciation of the stock, and dividends, when the company distributes a portion of its earnings to shareholders. Let’s make this more real and look at what compounding actually can do for you and some rules to follow to get the most out of this eighth wonder of the world. But compounding is your best friend in investing. ![]() ![]() Unfortunately, compound interest is quite boring for the first 20 or so years. He who understands it, earns it he who doesn’t, pays it.” “Compound interest is the eighth wonder of the world. If you want to see what this eighth wonder is up against, check Wikipedia on wonders of the world. But rather what Einstein referred to as the eighth wonder of the world. Ever heard someone say: “money doesn’t grow on trees”? I’m here to challenge that statement, and my argument is not that most money is made of paper.
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